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    Introduction To Sales and Distribution Management

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    Vaibhav Sharma
    This document provides an introduction to sales and distribution management. It discusses the evolution, nature, and importance of sales management. It also explains the difference between selling and marketing, defines sales management, and outlines the objectives, roles, skills, and types of sales managers. Additionally, it covers sales strategies and tactics, emerging trends in the field, and how sales management is linked to and relies on distribution management for execution.

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    Introduction To Sales and Distribution Management

    Uploaded by

    Vaibhav Sharma
    47 views21 pages
    This document provides an introduction to sales and distribution management. It discusses the evolution, nature, and importance of sales management. It also explains the difference between selling and marketing, defines sales management, and outlines the objectives, roles, skills, and types of sales managers. Additionally, it covers sales strategies and tactics, emerging trends in the field, and how sales management is linked to and relies on distribution management for execution.

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    This document provides an introduction to sales and distribution management. It discusses the evolution, nature, and importance of sales management. It also explains the difference between selling and marketing, defines sales management, and outlines the objectives, roles, skills, and types of sales managers. Additionally, it covers sales strategies and tactics, emerging trends in the field, and how sales management is linked to and relies on distribution management for execution.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    47 views21 pages

    Introduction To Sales and Distribution Management

    Uploaded by

    Vaibhav Sharma
    This document provides an introduction to sales and distribution management. It discusses the evolution, nature, and importance of sales management. It also explains the difference between selling and marketing, defines sales management, and outlines the objectives, roles, skills, and types of sales managers. Additionally, it covers sales strategies and tactics, emerging trends in the field, and how sales management is linked to and relies on distribution management for execution.

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    Introduction to Sales and Distribution Management

    Learning Objectives
    To

    understand evolution, nature and importance of sales management To know role and skills of modern sales managers To understand types of sales managers To learn objectives, strategies and tactics of sales management To know emerging trends in sales management To understand linkage between sales and distribution management

    Difference between Selling and Marketing


    Selling Emphasis on product Company Manufactures the product and then decides to sell it Marketing Emphasis on consumer needs and wants Company first determines the customers needs and wants and then decides how to deliver a product for satisfaction Management is profit oriented Long term planning: new products, tomorrows markets and future growth. Stresses needs and wants of buyers Views Business as a consumer satisfying process Emphasis on Innovation Integrated working Consumer determines price ,price determines cost

    Management is sales volume oriented Short term planning: todays products and markets Stresses needs of a seller Views Business as a goods producing process Emphasis on staying with existing technology Watertight compartments of departments Cost determines price

    SDM-Ch.1

    Selling views customer as the last link while

    marketing views customers as the very beginning of the business. Ore Selling is Inward looking It persuades the customer to take what the manufacturer has got Marketing is outward looking and tries to match the real requirements of the customer.

    SDM-Ch.1

    Evolution, Nature and Importance of Sales Management


    Evolution of Sales Management Situation before industrial revolution in U.K. (1760AD) Situation after industrial revolutions in U.K., and U.S.A. Marketing function splits into sales and other functions like market research, advertising, physical distribution

    Concept of Sales Management


    Sales Management originally referred to the

    direction of the sales force personnel. Later, the term took on broader significance in addition to the management of personnel selling, Sales Management meant management of all marketing activities, including advertising, sales promotion, marketing research, physical distribution, pricing and product merchandising.

    What is Sales Management?


    One definition: The management of the

    personal selling part of a companys marketing function. Another definition: The process of planning, directing, and controlling of personal selling, including recruiting, selecting, equipping, assigning, supervising, paying, and motivating the personal sales force.

    Objectives of Sales Management


    a) Sales Volume

    b) Contribution to profits
    C) Continuing growth

    Nature of Sales Management


    Its integration with marketing management
    HeadMarketing

    ManagerPromotion

    Manager Market Research

    Manager Sales

    Manager Market Logistics

    Manager Customer Service

    Relationship Selling
    Transactional Relationship Selling Value added Collaborative / Relationship / Partnering Selling Relationship Selling / /

    Relationship Selling
    Salespeople concentrate their team selling efforts

    on building trust and service on a few carefully selected customers over a long period with a aim of becoming a preferred or sole supplier

    Transactional Relationship / Selling:- one type of

    relationship marketing in which salespeople make onetime sales to price-oriented customers ,who are not contacted again Value added Relationship / Selling:- understanding current and future needs of customers and meeting those needs better than competitors with value added solution to their problems Collaborative relationship :- a type of relationship marketing in which a selling organization works continuously with its large customers to improve the customer performance in terms of operations , sales and profit

    Varying Sales Responsibilities / Positions / Jobs


    Sales Position Delivery salesperson Brief Description Examples Delivery of products to business Milk, newspapers to households customers or households. Also takes orders. Soft drinks, bread to retail stores. Inside order taker Behind counter in a garment shop Telemarketing salesperson takes Pharma products orders from orders over telephone nursing homes Outside order taker. Also Food, clothing products orders performs other tasks from retailers Provide information, build Medical reps. in pharmaceutical goodwill, introduce new products industry Technical information, assistance: professional consulting Steel, Chemical industries need technical inputs Getting orders from existing and Automobiles, refrigerators, new household consumers insurance policies Getting orders from business Software and business solutions customers, by solving their business and technology problems

    Order taker (Response selling)

    Sales support Missionary selling Technical selling

    Order-getter/demand creator (Creative, Problem-solving, Consultative selling) Solution vendor(business selling)

    Importance of Personal Selling and Sales Management


    The only function / department in a company

    that generates revenue / income The financial results of a firm depend on the performance of the sales department / management Many salespeople are among the best paid people in business It is one of the fastest and surest routes to the top management

    Roles and Skills of a Modern Sales Manager


    Some of the important roles of the modern sales manager are:
    A member of the strategic management team
    A member of the corporate team to achieve objectives A team leader, working with salespeople Managing multiple sales / marketing channels Using latest technologies (like CRM) to build superior

    buyer-seller relationships Continually updating information marketing environment

    on

    changes

    in

    Skills of a Successful Sales Manager


    People skills include abilities to motivate,

    lead, communicate, coordinate, team-oriented relationship, and mentoring Managing skills consist of planning, organizing, controlling and decision making Technical skills include training, selling, negotiating, problem-solving, and use of computers

    Types of Sales Managers / Levels of Sales Management Positions


    CEO / President V. P. Sales / V. P. Marketing

    Top-Level Sales Managers / Leaders

    National Sales Manager

    Regional / Zonal / Divisional Sales Managers


    District / Branch / Area Sales Managers

    Middle-Level Sales Managers

    First / Lower Level Sales Managers

    Sales Trainee / Sales Person / Sales Representative

    Sales Objectives, Strategies and Tactics


    The main components of planning in a company are objectives, strategies and tactics. Their relationship is shown below
    Decide / Set Objectives
    Develop Strategies Evolve Tactics / Action Plans

    E.G. A company wants to increase sales of electric motors by 15 percent, as one of the sales objectives.

    To illustrate the relationship between sales objectives, strategies and tactics, consider:
    Sales Goals / Objectives Marketing Strategy Sales and Distribution Strategy Tactics / Action plans

    Increase sales volume by 15 percent

    Enter export markets

    Identify the countries Decide distribution channels

    Marketing / sales head to get relevant information Negotiate and sign agreements in 3-5 months with intermediaries

    Penetrate existing domestic markets

    Review and improve salesforce training, motivation and compensation Use effective and efficient channels

    Add channels and members Train salespeople in deficient areas Train field salesmanagers in effective supervision Link sales volume quotas to the incentive scheme of the compensation plan

    Emerging Trends in Sales Management


    Global perspective

    Revolution in technology
    Customer relationship management (CRM) Salesforce diversity

    Team selling approach


    Managing multi-channels Ethical and social issues

    Sales professionalism

    Linking Sales and Distribution Management


    Either sales management or distribution management

    cannot exist, operate or perform without each other To achieve the sales goals of sales revenue and growth, the sales management plans the strategy and action plans (tactics), and the distribution management has the role to execute these plans

    Role of Distribution Management for some of the Sales Management Actions / Tasks
    Sales Management Actions / Tasks
    Strategy for effective coverage of markets and outlets

    Distribution Management Role

    Follow call plan / beat plan Make customer call productive Extending required level of credit Use multi-channel approach

    Strategy for handling customer complaints

    Prompt action at the customer interface level

    If the problem persists, involve senior sales and service people


    Co-ordination with distribution channels Responsibility of execution with distribution channels Expenses are shared between the company and intermediaries

    Planning of local advertising and sales promotion

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